So essentially price moves in waves as we mentioned. Expansions and retracements. That's the ground rule. But every next expansion with your bias will be a reversal.

See the picture below, completely annotated. You'll come back to these pictures once more of the puzzle pieces are connected, but notice how the low of the first expansion becomes the target for the potential short after the second retracement we had.

Essential both the second and the third expansion mentioned above are considered reversals, as they reverse from the retracement.

Don’t get too caught up in this though, it's to be compared with the square and rectangle rule. A square is a rectangle, but a rectangle is not a square.

A reversal is always an expansion, but not every expansion will be a reversal.